After an intense period of negotiation, Global Enterprises Corporation TA 2, 3 agreed to purchase all of the outstanding common shares of The Carlton Corporation. The agreed-upon price was \($294\) million, payable in Global Enterprise shares. According to the agreement, Global Enterprises would issue one share of its common stock in exchange for each share of The Carlton Corporation.

Following the exchange, The Carlton Corporation would become a wholiy-owned subsidiary of Global Enterprises. At the time of the negotiations, the market price of Global Enterprises’ shares was \($24.50\) per share. Presented below are the pre-acquisition balance sheets of Global Enterprises and The Carlton Corporation:

As part of Global Enterprises’ due diligence, the company determined that while the liabilities of The Carlton Corporation were fairly valued, some of the company’s assets were not fairly valued. The fair value of Carlton’s assets were as follows:

Required
Prepare the consolidated balance sheet immediately following the acquisition using consolidation accounting,

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Pre-acquisition Balance Sheets Assets Cash....... Short-term investments Accounts receivable (net). Inventory (LIFO)... Property & equipment (net) Other assets. Total assets... Liabilities & Shareholders' Equity Accounts payable... Other current liabilities. Bonds payable.. Other long-term debt. Global Enterprises Corporation $ 80,000,000 50,000,000 The Carlton Corporation $ 25,000,000 35,000,000 50,000,000 75,000,000 190,000,000 95,000,000 380,000,000 230,000,000 45,000,000 15,000,000 $820,000,000 $ 95,000,000 40,000,000 110,000,000 $450,000,000 $75,000,000 30,000,000 125,000,000 Common stock ($10 par) Common stock ($5 par) Capital in excess of par value Retained earnings. Total liabilities & shareholders' equity 75,000,000 120,000,000 - 70,000,000 310,000,000 60,000,000 20,000,000 140,000,000 $820,000,000 $450,000,000